A quadratic programming approach to the multi-product newsvendor problem with side constraints

A Constructive Methodology to Solving the Capacitated Newsvendor Problem: an Approximate Approach

“…The approach is iterative in nature and requires insights on how to break down and linearize the objective function. Abdel-Malek and Areeratchakul [14] develop a quadratic programming approach for solving the newsstand problem. The objective function is approximated as a quadratic form.…”

Jointly pricing and ordering for a multi-product multi-constraint newsvendor problem with supplier quantity discounts

“…We investigate the acquisition and pricing activities in the printable garment and sheeting business, and observe the value range for the parameters and their relationships. For example, we let the acquisition prices for the first discount segment, c i1 , be randomly produced in [5,20], the acquisition prices for the second discount segment, c i2 , be 94-96% of c i1 , and c i3 be 90-92% of c i1 . The overstocking cost, s i , is also randomly produced, but limited in 20-30% of c i1 .…”

Comparative statics of changes in risk on monotonically and partially responsive kinked payoffs

“…A well-known problem involving kinked payoffs is the newsboy (or newsvendor) problem first studied by Horowitz (1970) and Baron (1973). This problem has been widely extended and remains a prominent research topic (e.g., Lau, 1980;Sankarasubramaian and Kumaraswamy, 1983;Li et al, 1990;Gerchak and Mossman, 1992;Khouja, 1999;Petruzzi and Dada, 1999;Eeckhoudt and Treich, 2003;Alfares and Elmorra, 2005;Benzion et al, 2008;Abdel-Malek and Nathapol Areeratchakul, 2007;Li and Liu, 2008;Abdel-Malek et al, 2008). To derive close-form solutions, most studies assume risk-neutral newsboys, even though risk aversion is often believed to be the norm for small businesses and for businesses subject to bankruptcy costs.…”